derek mcginty is live from the u.s. capital where the president wrapped up the first state of the union of his second term. >> reporter: when the president made that walk down the aisles, the traditional walk down the aisle in the house of representatives, his pockets were literally bulging with all that political capital. tonight was an elaborate spending list of how he would like to have it spent. >> we can say with renewed confidence that the state of our union is stronger. [ applause ] >> reporter: but the state of the union's economy and the middle class, the president acknowledged, could use some serious help. >> our economy is adding jobs, but too many people still can't find full-time employment. corporate profits have skyrocketed to all time highs, but for more than a decade, wages and incomes have barely budged. >> reporter: step one, the president said, fix the budget, avoid the sequester, reform indictments, but fairly. >> we -- reform entitlements, but fairly. >> we can't ask senior citizens to shoulder it